Federal Student Loan Consolidation

loan consolidationStudents often take out a number of loans in order to pay the cost of higher education, which leads to making multiple loan repayments each month. Each of the loans have different repayment deadlines, payment amounts and other terms and conditions, which often leads to an unmanageable situation and to students defaulting. For borrowers who find it difficult to make more than one monthly payment, they can get in touch with a financial intermediary and consolidate their loans into one, which allows them to not only make one monthly payment at a single point in time per month, but also to make payments with lower interest rates. Students can also ask the consolidator to increase the number of payments so that the amount of each payment reduces.


Financial Aid

Benefits

college-studentFederal consolidation student loan programs are popular with students who are unable to secure a single loan for their education plan. In such cases, students often apply for other federal financial aid programs to ensure their cost of education is covered before they enroll in their degree program. Applying for federal loans is the best option, since these loans offer the lowest interest rates and have relaxed regulations compared to alternative loan options. Federal student loan consolidation programs also benefit students by offering them a lowered repayment amount and allow them to repay it over a longer duration of time. Students who have defaulted on the federal loans are also given a chance via the federal student loan consolidation program to start over and repay their debt without being declared a defaulter.

 


Lower your monthy payment by refinancing

Types of Student Loan Consolidation